DARREN SCHUETTLER, Johannesburg | Tuesday 9.45am.
ANGLO American Platinum, the world’s biggest platinum producer, posted stellar earnings on Monday and expected red-hot platinum group metal prices to cool down when Russia resumes metal exports.
Amplats reported an 82,7% increase in headline earnings to R2,57-billion ($408-million) for the year ended December 31. The company also posted a total dividend of 700 cents a share, up from 385 cents in the previous year.
Refined platinum output rose to 2,02-million ounces in 1999 from 1,8-million ounces, while palladium production increased to just over one million ounces from 930900 ounces.
”I think a combination of increased ounces, firmer dollar prices and a weaker rand is hopefully going to produce for us another good result in the year 2000,” said Amplats chief executive officer Barry Davison.
Davison declined to give a specific forecast to which platinum and palladium prices would settle. But he said a platinum price ranging between $400 and $500 an ounce would be comfortable for industry.
Platinum fixed at $523 an ounce on Monday afternoon, down from a 12-year high of $573 last Thursday.
”We do expect when the Russian metal flows again there will be a downward effect on prices. The million dollar question is where it will settle,” Davison told analysts at a year-end results briefing.
Amplats said its expansion projects were on track to boost the company’s platinum output to 2,5-million ounces by the end of 2002 and to 2,65-million ounces by the end of 2003.
Analysts were particularly interested in the company’s plans for its cash holdings, which jumped to R2,2-billion from R1,5-billion in 1998. — Reuters